The Chairman of telecommunication owners said the consumers would be the one to bear the burden of the new tax.
The Chairman of the Association of Licensed Telecom Owners of Nigeria (ALTON), Gbenga Adebayo, has kicked against the new telecom tax imposed by the Nigerian Government.
According to him, in addition to the existing 7.5% Value Added Tax, the new 5% excise tax means the subscribers would pay 12.5 per cent tax for communication and internet services.
Telecommunication owners would be forced to put the burden on the consumers, the Chairman revealed.
He said: “This is as a result of the 39 multiple taxes we are already paying, coupled with the epileptic power situation as we spend so much on diesel.”
New telecom tax unfair — Minister
Speaking at the first Indigenous telecom content expo, Dr. Isa Pantami, the Minister for Communication and Digital Economy reportedly described the imposition of 5 percent excise duty on telecommunication as unfair.
The minister also confirmed the telecommunication industry is already overburdened with other taxes.
“It is unfair to impose such a tax on an industry that was already burdened with other taxes and already contributing about 17 percent to the country’s revenue.
“We must do what we need to do to protect the industry,” he said.